The Trucking Tonnage for March makes near term high with February revised higher. What is occurring here is the deportation of undocumented drivers, a shutdown of falsified IDs and certificates and the truck leasing companies that sprung up creating over-capacity during the prior administration exiting the industry. The net effect is to make compliant companies such as JB Hunt(JBHT) more profitable just as Real Retail Sales appears to trend higher.
This general economic trend creates a better climate for the trucking industry, retailers and packaging cos like Packaging Co of Am(PKG) which just reported decent demand. It is also positive for XPO, GXO, RXO which provide services and transport.
Each of these suggestions have strong management teams and have remained suggestions throughout primarily because the timing of these positive changes vs their market psychology is always difficult to predict. I am always in doubt about market psychology timing and sometimes need to reassess my management perspective but if the management proves worthy, then holding is always a good idea till the market psychology finally takes hold.
